3 Blue-Chip Stocks to Sell in June Before They Crash & Burn

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  • Offload these blue-chip stocks to sell amid persistent economic headwinds and uncertain market forecasts.
  • Boeing (BA): Boeing’s focus on financial strategies like share repurchases over essential R&D could hinder its innovative prowess and operational recovery.
  • McDonald’s (MCD): McDonald’s is navigating increased commodity prices and geopolitical tensions, impacting its international market performance.
  • Intel (INTC): Intel’s ambitious transformation into a leading foundry by 2030 faces significant roadblocks from geopolitical tensions and financial hurdles.
Blue-Chip Stocks to Sell - 3 Blue-Chip Stocks to Sell in June Before They Crash & Burn

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Blue-chip stocks to sell should be on investors’ radars amidst the economic uncertainty. Interest rates have held steady at elevated levels, and the Federal Reserve is maintaining a cautious stance on future cuts. Moreover, while recent tech earnings have been relatively impressive, the broader market outlook remains uncertain. 

It’s easy to understand why investors gravitate towards blue-chip stocks. These stocks offer stability and reliability, with underlying businesses having track records of robust performance, sound financials and strong market positions. However, not every blue-chip stock is created equal, so it’s important to be circumspect.

This article covers three blue-chip stocks to sell, up against multiple headwinds that continue weighing down their operating performances. Additionally, doubts about their long-term prospects add a layer of risk to their stock market performance. Hence, it’s best to steer clear of these stocks.

Blue-Chip Stocks to Sell: Boeing (BA)

image of a Boeing (BA) 737 max aircraft. stocks to buy and sell related to Boeing
Source: Marco Menezes / Shutterstock.com

Shares of aerospace giant Boeing (NYSE:BA) have experienced massive turbulence. BA stock has tanked more than 31% year-to-date (YTD) due to renewed safety concerns that are shaking investor confidence. Though its management is doing its best to repair the firm’s tarnished reputation, the market will continue casting a skeptical eye on BA stock for now. 

Moreover, in reigniting investor interest in its stock, its management prioritizes financial measures such as share repurchases over research and development expenditures. Though this financial engineering may benefit the firm over the near term, it will only make matters worse.

Compounding its challenges, Boeing recently informed its suppliers of a three-month delay in a critical production milestone for the 737 jet family. Moreover, Bank of America analysts revised their outlook, projecting Boeing’s earnings and free cash flow will fall short of prior estimates for the next few years. The revised forecast is mainly linked to the elongated timeline for increasing deliveries of the popular 737 jetliners.

McDonald’s (MCD)

McDonald's golden arches
Source: Vytautas Kielaitis / Shutterstock

With tensions escalating in the Middle East and commodity prices climbing, McDonald’s (NYSE:MCD) near-term outlook looks wobbly. The fast-food giant witnessed a notable slowdown across key metrics in its first quarter (Q1), indicating serious challenges. Q1 global comparable sales edged up by just 1.9%, falling behind analyst consensus estimates of 2.3%. Moreover, these results have lagged significantly behind last year’s robust 12.6% growth in the prior-year period. 

While U.S. comparable sales nearly met projections, the international figures tell a different tale. Its international and developmental licensed markets segments lagged behind estimates by 50 and 100 basis points, respectively. 

The Middle East conflict has had a material impact on MCD’s results, overshadowing gains in regions like Japan and Europe. As the conflict enters its eighth month with uncertain future impacts, McDonald’s is up against a complex geopolitical environment, signaling a turbulent path ahead.

Intel (INTC)

Close up of Intel (INTC) sign at their San Jose campus in Silicon Valley
Source: Sundry Photography / Shutterstock.com

Chip giant Intel (NASDAQ:INTC) faces major duress as it confronts multiple challenges, casting a shadow over its future. It recently delivered an underwhelming Q1 report, marked by weaker-than-expected guidance for the upcoming quarter. Top-line growth for the second-quarter (Q2) is expected to fall between $12.5 billion and $13.5 billion, falling behind the $13.61 billion analyst expectations. 

Looking into the future, Intel’s prospects could be influenced by the escalating political tensions between the U.S. and China. The complex geopolitical situation could lead to potentially heavy tariffs on imports, potentially disrupting Intel’s cost structure and supply chain.

This comes at a time when Intel is looking to transform itself effectively into a leading foundry by 2030. However, it is up against major financial risks and uncertainty due to major capital requirements and the ongoing U.S.-China trade tensions. Hence, its leadership’s optimistic narrative is divorced from its financial realities and long-term operational challenges.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.


Article printed from InvestorPlace Media, https://investorplace.com/2024/06/3-blue-chip-stocks-to-sell-in-june-before-they-crash-burn/.

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